Metropolitan Bank (US:MCB)2025-11-07 13:46Financial Performance - Net income for Q3 2025 was $7.1 million, a decrease of $5.1 million from $12.3 million in Q3 2024, primarily due to a $21.2 million increase in the provision for credit losses[117]. - For the nine months ended September 30, 2025, net income was $42.2 million, down $3.1 million from $45.3 million in the same period of 2024, mainly due to a $30.0 million increase in the provision for credit losses[118]. - Non-interest income decreased to $2.5 million in Q3 2025, down $3.8 million from $6.3 million in Q3 2024, primarily due to the absence of GPG revenue[134]. - Non-interest expense for Q3 2025 decreased to $45.8 million, down $5.5 million from the previous year, mainly due to a $10.0 million decrease in regulatory reserves[135]. - Non-interest expense decreased by $3.8 million to $131.6 million for the nine months ended September 30, 2025, compared to $135.4 million for the same period in 2024[136]. Asset and Loan Growth - Total assets increased to $8.2 billion as of September 30, 2025, reflecting a growth of $933.7 million, or 12.8%, from December 31, 2024[107]. - Total loans reached $6.8 billion, an increase of $747.6 million, or 12.4%, primarily driven by a $752.7 million rise in CRE loans[110]. - The average balance of loans for the nine months ended September 30, 2025, increased by $681.1 million compared to the same period in 2024[130]. - Loan production for the nine months ended September 30, 2025, was $1.4 billion, compared to $1.0 billion for the same period in 2024[144]. Deposits and Cash Position - Total deposits rose to $7.1 billion, up $1.1 billion, or 18.2%, from December 31, 2024, with non-interest-bearing demand deposits comprising 19.5% of total deposits[114]. - Cash and cash equivalents rose to $385.9 million at September 30, 2025, up from $200.3 million at December 31, 2024[143]. - Total deposits increased by $1.1 billion, or 18.2%, to $7.1 billion at September 30, 2025, compared to December 31, 2024[145]. Credit Quality and Loss Provisions - The allowance for credit losses (ACL) was $94.2 million as of September 30, 2025, compared to $63.3 million at December 31, 2024, with a provision of $34.7 million recorded for the nine months ended September 30, 2025[113]. - Non-performing loans increased to $81.6 million, representing 1.20% of total loans, up from 0.54% at December 31, 2024[112]. - The provision for credit losses for Q3 2025 was $23.9 million, reflecting changes in macroeconomic outlook and loan growth[133]. Shareholder Returns - The company repurchased 39,166 shares at an average cost of $69.27 per share during the three months ended September 30, 2025, with $47.3 million remaining under the share repurchase plan[100]. - The company declared a quarterly dividend of $0.15 per share, payable on November 14, 2025[98]. Interest Income and Expense - Net interest income for Q3 2025 increased to $132.0 million, up $11.5 million from $120.5 million in Q3 2024, driven by an $801.4 million increase in the average balance of loans[128]. - The net interest margin for Q3 2025 was 3.88%, an increase of 26 basis points from 3.62% in Q3 2024, attributed to loan and deposit pricing initiatives[127]. - Interest expense for Q3 2025 decreased to $54.7 million, down $532,000 from $55.2 million in Q3 2024, due to a 34 basis point decrease in the total cost of funds[131]. Securities and Other Comprehensive Loss - Total securities amounted to $934.4 million, reflecting a $18.7 million increase, or 2.0%, from December 31, 2024[109]. - Accumulated other comprehensive loss decreased by $11.3 million to $41.9 million, primarily due to unrealized gains on AFS securities[116]. Regulatory and Economic Factors - The Tier 1 leverage ratio for the Company was 9.8% at September 30, 2025, down from 10.8% at December 31, 2024[150]. - The estimated effective tax rate for the nine months ended September 30, 2025, was 30.0%, down from 31.1% for the same period in 2024[137]. - The estimated economic value of equity (EVE) would decrease by 5.21% with a 200 basis points increase in interest rates at September 30, 2025[160]. - In the event of a 200 basis points increase in interest rates, the Company would experience a 0.13% decrease in net interest income[157]. - The aggregate estimated amount of FDIC uninsured deposits was $1.8 billion at September 30, 2025, compared to $1.6 billion at December 31, 2024[146].